The proposed project seeks to support the expansion of sustainability-linked finance for climate mitigation and strengthen capacity to access high quality carbon credit markets in partnership with Banco do Brasil (BB), a large commercial bank with significant strength in financing key sectors linked to Brazil's carbon footprint. This is a financial intermediary (FI) project where the Bank is supporting a credit entity (BB) to fund clearly defined FI subprojects. It seeks to offer an integrated package of financing and TA to attract investors and firms committed to achieve mitigation outcomes through sustainability-linked finance and carbon markets. The project comprises two components: Component 1: Expanding access to sustainability-linked finance for mitigation. This component aims to support Brazil's climate mitigation outcomes through the expansion of sustainability-linked finance through a sustainability-linked credit line and a climate debt fund. Component 2: Technical assistance. This component would provide technical assistance to Banco do Brasil to develop solutions that support beneficiaries in adopting credible mitigation plans and targets, reducing the high transaction costs of creating high-quality carbon credits, and increasing access to carbon credit markets.

To support the expansion of sustainability-linked finance for climate mitigation, and strengthen the private sector's capacity to access high quality carbon credit markets in Brazil.